Proparco renewed its strategic partnership with CRDB Bank Plc, Tanzania’s largest financial institution, by granting two new guarantees worth €24 million each, totaling €48 million. This collaboration with a trusted long-term partner is designed to drive growth and support high-impact MSMEs across Tanzania, fueling economic development and job creation.
The signing ceremony took place on March 24th, in Dar es Salaam, in presence of H.E. Anne-Sophie Avé, French Ambassador to Tanzania, Jean Guyonnet-Dupérat, Proparco’s Regional Director for East Africa, Abdulmajid Nsekela, Group Managing Director and Chief Executive Officer of CRDB Bank Plc and the EU Representative in the country, Sebastian Schaber.
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of Tanzania’s economy, contributing 27% of the country’s GDP and providing jobs for over 5 million people. Yet, despite their crucial role, access to financing remains a major hurdle. The Bank of Tanzania points to a lack of guarantees and stringent capital requirements as key barriers preventing MSMEs from securing the funds they need to grow and thrive.
CRDB Bank Plc, formerly known as the ‘Cooperative and Rural Development Bank,’ has been a cornerstone of Tanzania’s financial sector since its establishment in 1996. As the country’s largest financial institution, CRDB is a key driver of SME financing, reinforcing its commitment to empowering businesses and fostering economic growth. Beyond Tanzania, the bank has also expanded its footprint to Burundi and the Democratic Republic of Congo (DRC), strengthening its impact across the region.
Proparco and CRDB Bank have built a strong, long-term partnership driven by a shared mission—to empower the private sector across Africa. In a major step to bolster CRDB’s support for Tanzanian entrepreneurs, Proparco has provided two new guarantees, ARIZ and EURIZ, each valued at €24 million, bringing the total to €48 million. This initiative will unlock greater access to financing, fostering business growth and economic resilience in Tanzania.
The EURIZ guarantee, backed by the European Union and the Organization of African, Caribbean, and Pacific States (OACPS), aims to unlock new financing for high-impact MSMEs in sectors such as education, agriculture, and healthcare, with a focus on businesses led by women and young entrepreneurs. Meanwhile, the ARIZ guarantee, a risk-sharing tool from the AFD Group, will target MSMEs in trade and services. Together, these two guarantees will drive financial inclusion and empower Tanzanian MSMEs, which are crucial to the country’s economy yet remain significantly underfunded.
H.E. the French Ambassador to Tanzania, Anne-Sophie Avé, said: “This partnership between Proparco and CRDB Bank exemplifies the strong and dynamic economic cooperation between France and Tanzania. By facilitating access to financing for MSME, especially those led by women, we are fostering inclusive growth and empowering the next generation of Tanzanian entrepreneurs. France remains committed to supporting Tanzania’s economic development by strengthening key economic institutions and promoting sustainable investments that create jobs and will drive long term prosperity.”
Jean Guyonnet-Dupérat, Proparco’s Regional Director for East Africa, said: “Promoting access to finance for small and medium enterprises by collaborating with a leading commercial bank like CRDB is one of the best ways for Proparco to support the real economy in Tanzania. We’re grateful for CRDB’s renewed trust and will continue to support the bank’s initiatives in favor of businesses, job creation and economic development.”
Sebastian Schaber, European Union Representative in Tanzania, said: “Micro, Small, and Medium Enterprises are vital to Tanzania’s economy, providing employment for millions, and driving economic growth. Proparco’s guarantees to CRDB, backed by the European Union, will further contribute to enhanced access to finance of Tanzanian entrepreneurs. With partners like Proparco, the European Union reaffirms its commitment to fostering economic inclusivity, with a focus on women-led and youth-led businesses.
